American history

ECONOMIC HISTORY

The economic history of the United States spans a period of less than two and a half centuries. Over the course of those years, the United States grew from an alliance of thirteen British colonies with distinct economies and institutions to represent over a fifth of the world economy.

Wilson Administration

When Woodrow Wilson was elected President due to a split Republican vote, he implemented progressive policies that, for better or worse, forever altered the course of the U.S. economy.

In 1913, the Sixteenth Amendment was ratified, and the income tax was instituted in the United States. While public spending as a percent of GDP had declined during the Taft Administration, it began to rise under Wilson's leadership in a trend that would continue for many decades.

Wilson also signed the Federal Reserve Act, or Owen-Glass Act, establishing the Federal Reserve as the first central bank of the United States since 1836. While Wilson is generally considered to have had pacifist, pro-government policies, there are some who theorize he conspired to get America into World War I to serve corporate interests.

The departure of working men to serve in the armed forces was a significant blow to the workforce, and many women gained employment during the war.